An impressive bullish reversal day for the stock market averages. One day of trading usually doesn’t get me excited but we had equally impressive volume in the SPY (almost 172 million shares).
It can be challenging to find a bias to trade with conviction in this tape, and there is good reason for it. Run a scan on both sides of the trend. You will see an equal amount of ideas. This means neither the bulls or bears are in charge.
When the market bias is this neutral it is crucially important to put together a solid pre market game plan.
Yesterday was a unique trading lesson. One that would be a heated discussion on Stone St, down town NYC. Do you buy weak stocks that have reversed on the day?
I say no.
Stock Market Today: Map of the S&P 500
(click the map for a full view)
SPY bullish reversal yesterday was very impressive. You had to love everything about it. Great volume too. Lets see if we can get follow through today.
(click the chart for a full view)
Stocks to Trade | Thursday August 13, 2015
- Oil and gas continues to hold the bid.
- Financials reversed higher but still look weak as a group.
Charts in Focus
Home Depot has been flirting with $118 and multi year highs for about ten days now. Buying the breakout on a price-cross has got early bulls slapped around but I still over the trade if it can trade above and close above that level.
(click the chart for a full view)
Earnings in play today > 1M avg shares: AAP, COTY, JWN, KSS, PAH, XHR, YY
Bullish Ideas ATR/Volume/Price: NFLX, GOOG, GOOGL, HFC, AMZN, TSO, UA, VLO, NEE, ACN, EA, HD>118, MA, PSX,
Bearish Ideas ATR/Volume/Price: wll, yelp, qrvo, gmcr, myl, juno, rrc, uri, bidu, dvn, woz, sina, cern, utx, baba, hot, cvx, grun, isis, cat, nsc, mmm, xom, unp, m,
Weak Stock Weak Close: bidu, cma, coh, fit, m, myl, tasr
Strong Stock Weak Close: BAX, JBLU
Weak Stock Strong Close: wll, qrvo, yelp, rax, uri, dyn, mur, paa, pwr, hbi, cop, nbl, kmi, ete, cvx, ir, aapl, symc, grub, isis, nrg, scty, cat, adm
Strong Stock Strong Close: TE, NVDA, CCE, MDLZ, ED, ATVI, HOLX, JNPR, D, NEE, CMS, TMUS, PFE, PSX,
20 day Breakdown: bac, jd, c, wfc, m, yum, bidu, pot, ctrp, etfc, cybr, sti, agn, cma
20 Day Breakout: HCP, KR, SYY, PHM, OXY, SO, CREE, DHI, APC, PEG, PCG
2x Normal Volume: AAPL, BABA, JD, YHOO, DIS, M, COP, GPRO, YUM, HCP, BIDU, SYMC, COH, CNQ, SYY, CREE, RAX, CF, KSS, HCN, SCTY, AEM, TEX, CYBR
Watch List Longs: MO, VLO, TJX, JNPR, ADBE
Watch List Short: cop, cvx, bby, all, xom, adm, dow, dd, wynn, hpq,
Inside days: rax, amt, pld, gmcr, rai
Bullish Reversal Day | August 13
Nasdaq, S&P 500 Close Higher After Impressive Rebound
After an impressive rebound, the broad indexes closed slightly higher Wednesday. The Nasdaq composite climbed 0.2% after being down as much as 1.8%. The composite mirrored a rebound in Apple (NASDAQ:AAPL) shares, which closed up 1.5%.
The S&P 500 advanced 0.1%. The Dow Jones industrial average was a fraction lower. The small-cap Russell 2000 fell 0.1%.
Volume rose sharply on the major exchanges, according to early data. Winners and losers were about even on the NYSE while declining stocks led advancers by 9 to 7 on the Nasdaq.
The energy sector led as crude prices rose modestly. Utilities continued to outperform: The Dow utilities added 1.5%.
Stocks rebound from big losses, close higher
U.S. stocks staged a rebound in late trading Wednesday as the major indexes climbed back from sharp early losses and closed mostly higher.
Stocks initially tumbled as anxious investors grappled with the the ripple effects caused by a further devaluation of China’s currency and rising concerns about the health of China’s wobbly economy.
But after a sharp knee-jerk reaction to the downside, investors apparently are starting to question whether China’s move to devalue its currency is the start of a full-fledged currency war.
“I think the term is overly dramatic,” says Alan Skrainka, chief investment officer at Cornerstone Wealth Management. “I don’t believe other countries will respond to this in a dramatic way.”
Skrainka also points out that China’s 2% devaluation of the yuan Tuesday and a further drop today is “not a major deal” from a historical perspective, especially given that the U.S. dollar has already seen a roughly 30% rise in its current rally.
Continue reading on usatoday.com